Joint product

Please see attached document.

Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value of the split-off point. These sales values are as follows: Product X, $50,000; product Y, $90,000; and product Z, $60,000.

Each product may be sold at the split-off point or processes further. Additional processing for each product (on an annual basis) are shown below: